Naturally, the events of that crucial period demonstrated, priority was given to national
integration and, as a consequence, to defense and military equipment.
It was made clear that for such a national effort to become tangible
an overall policy of modernization of the economic and political institutions
of the country was essential. In the first period of the Venizelist government significant measures were adopted in the economic
sector. First, with the constitutional revision of 1911 the chance was given for expropriation
of farming lands through compensations, in cases dictated by the common good. This regulation
allowed and legalized the agricultural reforms of 1917. Also in this period, the last vestiges of feudal landowning were abolished in the Ionian islands, while for the first time
agricultural co-operatives were established, supported financially by the National Bank. In the field
of employment, Sunday holidays and the eight-hour working day
were ratified, while progress was made in the recognition of workers' insurance rights.
The policy of Trikoupis and his successors was pursued as concerns the imposition of tarrifs. High
tariffs on imports constituted a remarkable income for the public treasury,
while local production was protected and Greece's still
embryonic industry was given the chance to grow. In addition, in 1911 a progressive tax on overall income
was introduced and thus, for the first time, direct taxes were adopted, a fact
which meant a fairer distribution of taxation between various social groups.
Generally speaking Venizelos followed a policy of harmonizing the economic
and social relations according to the models of western European countries. He pursued innovative
measures both in public finance and the function of private economy. In this
context the annexation of the New Territories (Epirus and Macedonia) created a state
with sufficient territory and resources to be able to join the international economic
system.
The second phase of the government of the country by the Venizelists was the result
of the National Schism. The revolutionary government of Thessaloniki was compelled
to take measures to support itself. Thus, one of its first
measures was agricultural reform, that would provide for the native
landless populations and the refugees that were thronging the country. The entrance of Greece
in to the First World War on the side of the Entente allowed her to hope for the aid of allied
credit at the end of the war. This is what Venizelos hoped for in the
post-war period and at the peace conferences. Indeed, by 1920 part of the allied credit
has been absorbed; but, with the political change of November, this process
came to an abrupt end.
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